This year most of us saw a significant change in our tax assessed values for our homes on Vancouver Island. You may be wondering - What is the difference between the tax assessed value as determined by BC Assessment and the market value of my home?
- Assessed value is determined by BC Assessment. It’s an estimated value that provides the tax authorities a basis to calculate your property taxes.
- Market value is the price a home is listed for when it goes up for sale. It’s typically determined by a realtor and can be based on comparable homes in the area. Before a property is sold, the buyer and seller must agree on the price.
Assessed Value
Imagine if every home had to be appraised in person. That would take a lot of time and money. Since government can’t send appraisers to every individual property, they still need an estimation of a homes value to determine property taxes. Even though you receive your BC Assessment in January, it’s based on an estimation from July 1 of the previous year. This means that it’s not necessarily reflective of the current market.How is assessed value determined?
Assessed value is calculated based on general information about your home, including:- Location
- Size & square footage
- Shape
- Use
- Information about the real estate market during that year
- Age & condition
- Recent sales of similar properties sold in your area
- Lot size
- Topography of the area
- Additional structures (garages, additions, decks)
Market Value
The market value is needed to determine what to price your home for sale and find out the actual market value. A qualified realtor will do a comprehensive appraisal of your home, combined with their market knowledge and comparable properties. Market value is based on all of the unique qualities of your home like the quality of finishings, the condition of the home and any other special touches. Market value can be based on factors such as:
- Layout
- Near-by amenities
- Condo building amenities
- Size
- Age
- Updated Roof/Appliances/Hot Water Tanks/Electrical
- Quality and grade of finishings (Stainless Steel, Hardwood Floors etc.)